Morningstar | DowDuPont Announces Post-Spin-Off Leadership Plan; No Changes to Our Outlook
DowDuPont announced senior leadership for the specialty products and agriculture spin-offs. We continue to forecast that the spin-offs will occur by mid-2019. The company named Marc Doyle as CEO of the specialty products business spin-off, which will be named DuPont. Doyle, who is currently the COO of the materials science business, joined DuPont in 1995, and was the president of the protection technologies business from 2013 until the merger with Dow closed.DowDuPont named Jim Collins as CEO of the agriculture business spin-off, which will be named Corteva Agriscience. Collins, who is currently the COO of the agriculture business, joined DuPont in 1984 and held various leadership positions in DuPont before the merger with Dow closed. In March, DowDuPont announced Jim Fitterling will become CEO of the materials science business spin-off, which will be named Dow. Fitterling is currently COO of the materials science business.
We expect all three future CEOs to focus on preparing for the upcoming spin-offs next year as well as focusing on the integration of the new business divisions following the merger between Dow and DuPont. Given the extensive experience at DowDuPont (including the legacy Dow and DuPont companies) of all three executives, we maintain our Standard stewardship rating for DowDuPont and will likely maintain the same rating for all three companies after the spin-offs. With our outlook unchanged, we maintain our $65 per share fair value estimate for narrow-moat DowDuPont.
DowDuPont is a holding company comprised of The Dow Chemical Company and E. I. du Pont de Nemours and Company with a focus on forming independent, publicly traded companies in the agriculture and specialty products sectors. The company's worldwide operations are managed through global businesses and include the following reportable segments: Agriculture; Electronics and Imaging; Nutrition and Biosciences; Transportation and Advanced Polymers; and Safety and Construction.
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